India: Gail re-launches LNG carrier tender

22 September 2015, News Wires – Indian gas utility Gail has re-floated a $7 billion tender for up to nine liquefied natural gas carriers, according to reports.

LNGThe Economic Times reported Gail had re-floated the tender for charter hiring of the nine ships, quoted in three lots of three, with one ship in each lot to be built at an Indian shipyard.

The report claimed the tender document provided for the Indian shipyard taking a 5% – 13% stake in the carrier it builds, an option which was not in the original documents for a tender it scrapped earlier this year.

The Economic Times claimed the original tender failed at the time as no foreign shipyard was willing to share LNG shipbuilding technology.

However, it now reports that Korean shipbuilders Samsung Heavy Industries, Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering have agreed to cooperate with Cochin Shipyard, L&T Shipbuilding and Pipapav Shipyard respectively.

The new tender documents cited by the Economic Times reportedly stated Gail has right to take up to a 10% interest in any of the ships, while Shipping Corporation of India, which will operate the vessels, will have the right to gain a 26% stake in the ships.

The vessels will be used to ship gas from the US under 18-year charter agreements, with foreign yards being given until 31 May 2019 to deliver the vessels, while the Indian yards will be expected to deliver their units between 1 July 2022 and 30 June 2023.

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